PURCHASE, N.Y. (AP) -- MVC Capital Inc. said Friday that it is selling U.S. Gas & Electric Inc. for roughly $97.2 million to a group that includes two of the utility company's leaders.
United States Gas & Electric Holdings Inc. is the holding company making the purchase. It is primarily owned by Louis Beck and Lance Shaner, members of the management of USG&E.
The deal is still subject to U.S. Holdings securing third-party financing, as well as regulatory approval. It is expected to close by Oct. 31.
MVC, an investment firm based in Purchase, N.Y., first invested $500,000 in the company in 2007.
The company said proceeds from the deal are going to be paid to MVC in three installments over a 13-month period. Assuming the transaction closes, MVC anticipates that its quarterly dividends could materially increase.
U.S. Gas & Electric provides energy to customers in Connecticut, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, and Pennsylvania.
Shares of MVC jumped 57 cents, or 4.3 percent, to $13.70 in midday trading. Its stock hit as high as $13.89 earlier in the session, the highest point since April 2011.